Lithia & Driveway price target raised to $348 from $305 at Goldman Sachs

Goldman Sachs analyst Kate McShane raised the firm’s price target on Lithia & Driveway to $348 from $305 and keeps a Neutral rating on the shares after its Q2 earnings beat.. The analyst cites the roll forward of higher estimates and a higher market multiple of 19.3-times vs. 18.5-times prior. The firm also notes that Lithia’s new vehicle GPUs have remained resilient despite affordability headwinds, and management expects a similar pace of decline of about $100/month throughout the remainder of the summer before the pace increases to about $200/month later this year.